Analyzing NU (NYSE:NU) and RocketFuel Blockchain (OTCMKTS:RKFL)

NU (NYSE:NU) and RocketFuel Blockchain (OTCMKTS:RKFL) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares NU and RocketFuel Blockchain”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$8.03 billion	8.51	$1.03 billion	$0.31	46.26
RocketFuel Blockchain	$200,000.00	3.36	-$3.78 million	N/A	N/A

NU has higher revenue and earnings than RocketFuel Blockchain.

Volatility and Risk

NU has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, RocketFuel Blockchain has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for NU and RocketFuel Blockchain, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	0	3	5	0	2.63
RocketFuel Blockchain	0	0	0	0	N/A

NU presently has a consensus target price of $15.21, suggesting a potential upside of 6.08%. Given NU’s higher possible upside, research analysts clearly believe NU is more favorable than RocketFuel Blockchain.

Profitability

This table compares NU and RocketFuel Blockchain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NU	15.11%	27.00%	4.19%
RocketFuel Blockchain	N/A	N/A	N/A

Institutional and Insider Ownership

80.9% of NU shares are owned by institutional investors. Comparatively, 7.2% of RocketFuel Blockchain shares are owned by institutional investors. 1.2% of NU shares are owned by company insiders. Comparatively, 28.7% of RocketFuel Blockchain shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

NU beats RocketFuel Blockchain on 10 of the 11 factors compared between the two stocks.

About NU

Nu Holdings Ltd. provides digital banking platform and digital financial services in Brazil, Mexico, Colombia, and internationally. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuCrypto, a solution for buying and selling cryptocurrencies through the Nu app; NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.

About RocketFuel Blockchain

RocketFuel Blockchain, Inc. provides payment and check-out systems for shoppers on e-commerce sites using cryptocurrencies, bitcoin, and direct bank transfers. It also offers payout solutions, cross-border B2B transfer solutions, and other solutions, as well as invoicing and crypto payments services. The company has a strategic partnership with ACI Worldwide, Inc. to offer the cryptocurrency payment solution available to customers through ACI portals. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.